Eric Semler, chairman of Semler Scientific Inc., believes many hedge funds stay unconvinced about Bitcoin’s long-term viability past the Trump administration.
Key Takeaways:
- Eric Semler says many hedge funds doubt Bitcoin’s future past the Trump administration.
- Regardless of skepticism, Semler’s agency is aggressively constructing a BTC treasury, focusing on 105,000 cash.
- Crypto publicity amongst hedge funds is rising, with practically half now holding digital belongings.
Talking in an interview with Natalie Brunell on Coin Tales, Semler stated conventional finance nonetheless views Bitcoin as a fleeting pattern that won’t survive political transition.
“I believe that they suppose it’s a fly-by-night idea and that it’s most likely going to, after the Trump administration, return down rather a lot,” stated Semler, who additionally based TCS Capital Administration.
Trump’s Crypto Push Faces Uncertainty Past His Time period
His remarks come as debate grows over whether or not U.S. political help for crypto will endure previous President Trump’s time period.
Whereas Trump lately endorsed a Bitcoin Strategic Reserve, figures like JAN3 CEO Samson Mow have warned that such initiatives might shortly unravel underneath a distinct administration.
Regardless of broader skepticism, Semler has gone in the wrong way. In Could, Semler Scientific turned solely the second U.S. public firm to undertake a Bitcoin treasury technique.
The agency presently holds 4,449 BTC and plans to ramp that as much as 105,000 BTC inside two and a half years, focusing on 10,000 BTC by year-end.
For Semler, institutional doubt is a part of the chance. “If you’re betting on one thing that almost all doesn’t consider in, and also you’re proper, you make a lot extra money,” he stated.
“I really like the negativity; I’m a contrarian investor,” he added, noting that his most worthwhile investments got here when others have been dismissive. “These are the forms of investments which have the very best returns.”
Whereas some hedge fund managers are nonetheless hesitant, the broader pattern suggests rising crypto publicity.
“We’re targeted on changing into a powerhouse in #Bitcoin.”
New episode simply launched that includes Chairman Eric Semler and CFO Renae Cormier of Semler Scientific $SMLR.
Hear all in regards to the firm’s plans to aggressively stack Bitcoin and climb the leaderboard of public Bitcoin… pic.twitter.com/Rk0O4uab82— Natalie Brunell
(@natbrunell) June 19, 2025
A 2024 survey by the Different Funding Administration Affiliation and PwC confirmed that 47% of hedge fund managers now maintain some degree of crypto publicity, up from 29% in 2023 and 37% in 2022.
Wanting additional again, a 2021 Intertrust World survey of hedge fund CFOs confirmed that almost all anticipated to allocate 7.2% of their portfolios to crypto by 2026.
VanEck Warns BTC Treasury Technique Could Backfire
Only in the near past, VanEck’s head of digital asset analysis, Matthew Sigel, raised considerations in regards to the Bitcoin treasury methods utilized by sure public firms, suggesting that continued accumulation of BTC might quickly hurt shareholders greater than assist.
He particularly criticized using at-the-market (ATM) share issuance applications, warning that they will turn out to be dilutive when inventory costs method the corporate’s Bitcoin web asset worth (NAV).
Sigel proposed a number of measures to forestall worth erosion, together with pausing ATM applications if an organization’s inventory trades beneath 0.95x NAV for over 10 days.
He drew comparisons to previous failures within the crypto mining sector, the place extreme dilution and govt pay led to main shareholder losses.
For instance, he cited Semler Scientific, a medical tech agency that entered the BTC area in 2024.
Regardless of buying 3,808 BTC, its inventory has fallen over 45%, and its mNAV has dropped to 0.82x.
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